Adjustment Dynamics for Human Players (by Michihiro Kandori)


Michihiro Kandori


I point out that there is a fundamental difficulty associated with the formal study of dynamic adjustment processes towards a Nash equilibrium in the context of social and economic problems, i.e., for human players. This difficulty has created an unfortunate dichotomy of researchers and has hindered progress in this area of research. I suggest, with a couple of examples, that a promising way to overcome this problem is to strengthen the empirical side of research on adjustment dynamics.